New Tax Penalties & Disallowance Rules: Enhanced Taxpayer Protection
This act changes how tax penalties and disallowance periods are applied by the IRS. Now, before a penalty or disallowance takes effect, the decision must be approved in writing by the immediate supervisor of the IRS employee. This aims to increase transparency and protect taxpayer rights.
Key points
Penalties and disallowance periods require written approval from a supervisor before a notice is sent to the taxpayer.
Clarifies what constitutes an "initial determination" for penalties or disallowances, excluding general inquiries.
The IRS will be required to publicly report on all assessed penalties annually, increasing transparency.
Introduced
Citizen Poll